I assume that, in your question, swing trade = multi-day trade.
Answers in my case...
- Day-trading = possibility to have quicker more statistics about my own trading (to assess profitability, try to improve things, etc.)
- What addchild calls "instant feedback loop" is more comfortable for my psychology.
- Day-trading = no risk to suffer from a price move when market are closed (night for EUREX products, week-ends, etc.)
- Day-trading = less exposure to the market in terms of time (so less risk to be caught in a flash crash, etc.)
- I understand my day-trading methods (trapped traders, order flow, etc.) whereas, for me, multi-day trading is impacted by fundamentals and economic events, that I do not really grasp. In other words, in my case, longer term moves are less predictable (in probability, of course) than short-term moves.
- (still to be confirmed! ) Day-trading = more profitability for me, I hope.
- Positive side-effect of day-trading: more flexibility for family life.
Once more, it is related to my trading.
EDIT : After further thinking, the most important parameter in my case is the understanding of the associated methods. I guess that some traders are happy with a method which works. I need something which works and that I understand.
Last edited by Nicolas11; September 15th, 2012 at 03:15 AM.
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I'm sure trading CL is a different animal. But for me swing trading is much easier and actually does not require deep pockets. You just have to be comfortable with your risk...maybe no 10:1 leverage, but I am running 5:1 on NQ while I sleep. Just floating over event risk. I've probably had positions on during 80% of the major news this year that had nothing to do with the news...lol...sometimes you win, sometimes you lose, and sometimes you lose and win.
More power to the people that can do the intra-day, it is just not for me. I was not successful until I stepped back into the swing trade time frame that I had told myself I would never trade. Funny how that works.
To the daytrade = instant feedback comment. I think that is part of what screwed me up. I am actually better coming into a chart cold-turkey and telling where it is going than if I had been staring at it.
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I started as a swing trader holding stock index futures for several days (12 days being max ever). The overnight gaps eventually sent me to daytrading. After many years daytrading I can again see the value of swing trading combined with daytrading.
By keeping a look at the daily/weekly chart and getting a good entry in a daytrade near support and a strong advancing day. A High Probability Sweet Spot Money Ball Trade that runs for several days just adds so much to my bottom line, I have to reconsider. As I get older those swing trades get more attractive.
Trading from Europe gives me 14 hours of day trading, so it makes sense to swing some. The overnight gap time has been significantly closed.
I like to watch the price action on first hour of day for a trend day, Monday for a trend week. On first of month for a trend month. Often the high or low for day/week/month is in on these times. There are also several good timing services that help as well.
I believe any trader over age of 50 will take more swing trades as the years tick on. I certainly plan to.
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Years ago, I decided I didn't want to spend all day staring at a computer screen any more, so I started swing trading.
It was great, once a day I would review my positions and make any necessary adjustments.
That left me time to exercise , run errands and the always popular... business man's lunch at the Eager Beaver ....
Then one Sunday morning I was riding my mountain bike along the bayou and had a heart attack. I pulled out my cell phone ... called 911 and then called my son's mother and told her where all the bank accounts and passwords were ...
I figured if I was leaving this world... I wasn't leaving any loose ends.... then as I was laying there on the ground awaiting the EMS or "The End" ... whichever arrived first... I realized .... "Oh ...F$%K ... I have open positions and the trading desk won't open for 8 hours.... "
I have only day traded since then...
I'm just a simple man trading a simple plan.
My daddy always said, "Every day above ground is a good day!"
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I did swing trading stocks for many years. I traded swings from 30 days to some years. I did earn a lot and lost big when we had the downmove (2008/09). Net I made a lot of money.
After the downmove I had no idea in longer (30 day+) terms. With the big losses in my head I was not willing to risk much in such "uncertain" times. I came to the conclusion that swing trading is dead for me as it doesn't work any more for me as the world wasn’t the same as before.
Daytrading futures was the logical way for me. Many trades with little risk/profit and out of market overnight.
I made more money with swing trading. But now it is much more constant. And I don't have to think weather QE3 will still be working in two weeks or will be out of steam. Monday I will open a chart and take my handful of trades. Perhaps long or short or mixed. Who knows, who cares?
Swing trading did use my brain. Daytrading is a bit a stupid game. But it gives me a lot of room for all the things I always wanted to do...
I would swing trade again, but first the market has to change for that direction.
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